How To Save Time On Documentation of Tax Returns

5 Record Gathering Tips for Filing End of Year Tax Returns

13:01 21 March 2013

One of the things that people hate most about filing their taxes is trying to get all their records and documentation together. There are medical bills, receipts for business expenses, mileage and gas receipts, tuition and education bills, taxes paid on your home, and more!

But having all these records can save you huge amount on your tax bill, and most folks need every bit of help they can possibly get.

So here are five tips to help you with your record gathering before you go to file your 2012 personal tax returns:

• Although I know if you’re reading this article this suggestion is somewhat “after the fact”, I would be remiss not to share it. Don’t wait until tax tome to start gathering documents. Get organized at the beginning of each year and keep a file for everything!

 

• Create categories for your documents using small baskets or trays, and separate them accordingly. Then go through each category and put them in dated order.

 

• Create a separate file for documents that you don’t think you need, or are not sure. Don’t throw them away! You never know when you may need them. Remember, it’s better to have them and not need them, rather than need them and not have them.

 

• Keep receipts for at least five years just in case. If you ever get audited, you will need them.

 

• Now that you’ve collected all your documents, you know what files you need to set up for next tax season. You’re now ahead of the game!

Now that you’ve got everything together for your 2012 personal tax returns, do the smart thing and go ahead and get started for next year! Go ahead and create a system for collecting and filing all of your receipts in a properly organized manner and it won’t be such a headache when you file next year.